Absolutely right. Not only do you know where the money for the notes are. You also know and do all of the packaging processing, and mediating. You well deserve to make money on the deal and if someone has problem that you are not the principle then walk. The fact is whether or not you are a principle or broker, that note seller has an amount in mind that they will sell their note for. If you can get them that amount or better then it does not matter what capacity you go about doing it in. You could however learn to buy in your name and pass through to your investors and say “yep I am the principle” in which case you are. Ask those same people if the people over at their bank are the principle lenders. The bank will tell them yes, but the fact of the matter is that the bank is selling that loan immediately or very soon after to someone else for a profit. You are an intermediary just like the bank and you deserve compensation for your knowledge and services.
How do you overcome the Note Broker/Quick Flip objection of not being a principle? What do you tell a Note holder or property owner/agent when they ask if you are a principle or “are you pre qualified for financing, you can pay with all cash?”.
How do you answer these questions with out sacrificing credibility. I have found that many people don’t want to
work with me or don’t take me seriously because I don’t have
cash or credit. I am having trouble with my prospecting task because of it and am trying to come up with some solutions.
I am considering partners but I am not sure how to go about it yet. I have C. Sheets partnership course along with some others that I am going to try to pull some ideas from.
Any ideas on how to keep the credibility with out the little white lie? I am going to start telemarketing for notes and I really need to come up with a good script. I am
going to target proffessionals so I have to make sure they know I am serious!!
Thanks for listening and any and all comments and advice
greatly appreciated.
P.S. Writing this has really helped. I am going to go over
the service I know I can provide. I think that will help. I know I can work out these kinks and with the suggestions you all send my success is guaranteed.
Re: How To Respond To The Note Broker/ Quick Turn Objection?? - Posted by AJ - Oklahoma
Posted by AJ - Oklahoma on April 08, 1999 at 12:39:07:
On every info sheet or flyer or anything I use when looking for notes I always say something like: I am a buyer and broker of real esate notes. I consider residential and commericial notes up to $500,000. I have unlimited access to cash.
All true, little notes I like I keep, the others and the big notes go to somebody else. If the note is saleable, someone has the funds.
I never try to hide the fact that I am brokering a note to another investor. Most folks I deal with are happy to work with someone who can help them get the cash they need. More than once I have had a client ask if I was going to make any money on the deal…they wanted to make sure I would be compensated for helping them out!
I think you are right on target by considering your ability to broker a note a service to a noteholder who would rather have cash in hand. If they knew where to get cash for the note they would have already done so; but they don’t know who to call or the steps to follow. You act as a professional who can help them out. No reason to hide what you’re doing for them any more than a RE agent hides the fact that they earn a commission or a mortgage broker hides the origination points they charge on a loan!
For those who insist on dealing with principals only, fine, if they have the knowledge and the time to find the investors and negotiate the deal, good for them.